The Impact of Corporate Accountability & Transparency on the Performance of Manufacturing Firms Listed on KSE

Abstract

Economic success of a country, if described in few words, is the success of big corporations of that country and vice versa. Corporate governance is thus economic governance in general. Some of the major corporate scandals that stunned global economies and businesses followed by falling down of corporate giants like Enron, BCCI, Coloroll, Polly Pech, Barings, HIH Insurance and Parmalat resulted in tight regulations, codes, and principles of corporate governance. These scandals erupted due to nonexistent of accountability and transparency principles of corporate governance within these companies as the management concealed important facts from the shareholders and that they were also not accountable for their actions.This empirical research study intends to examine different characteristics of Corporate Governance and their impact on firm performance. These characteristics include Transparency and Accountability. Analyses were based on primary data which will be collected through questionnaire from 200 respondents. Correlation and Regression analysis were used to get results of the study. Results of the study revealed positive relationship between accountability and transparency with firm performance. The results showed that accountability and transperancy has positive significant impact on the firm performance.